DGAP-News: 2G Energy AG exceeds EUR 200 million mark for the first time in FY 2018. With EUR 210 million of net sales, EBIT margin also expected in the upper forecast range.

- As planned, the net sales of 2G Energy AG in FY 2018 report continued growth of 10% to around EUR 210 million (previous year: EUR 189.4 million)

- Management Board expects EBIT margin in upper half of forecast range (4.0 % - 5.5 %)

- Sound new order intake at the start of year reflects further growth in export ratio (50 % after 45 % in the previous year)

- Moderate adjustment of net sales forecast to EUR 210 - 230 million for FY 2019 (previously EUR 200 - 230 million)

- Successful live start of "I.R.I.S." intelligent service assistance

2G Energy AG (ISIN DE000A0HL8N9), one of the internationally leading manufacturers of gas driven combined heat and power (CHP) systems, continues its organic growth of recent years averaging 10% per year, as planned. The company has sustainably expanded production capacities at its Heek site through numerous organizational measures and, in particular, shorter throughput times. According to preliminary figures, two-shift capacity utilization throughout the year led to annual net sales of around EUR 210 million, so that for the first time the EUR 200 million annual net sales level was surpassed.
Based on the combination of a higher net sales level and further improvements in internal processes, the Management Board expects an EBIT margin for 2018 in the upper half of the previously published earnings forecast (4.0 % - 5.5 %). 2G thereby further improved its EBIT margin after 3.9% in the previous year and 3.2% in 2017.

Internationalization - good start to the year
Following brisk January new order intake well above the long-term average - reflecting a one-off boom in the biogas sector at the start of 2018 - business has calmed again recently, and at EUR 12.3 million, the previous year's record figure of EUR 16.9 million (2017: EUR 6.0 million) was not reached, as expected. The Management Board sees the renewed increase in the export ratio (50 % after 45 % in the previous year) as confirmation of the internationalization strategy it has adopted.

Lead-to-Lean - around 10% capacity expansion planned
Given the very high order book position of EUR 131.5 million (previous year: EUR 95.9 million) at the start of the year, full-year two-shift capacity utilization is also to be expected in the current 2019 financial year. The successful work launched in 2017 to develop and implement an industrial process model will be continued. By consistently implementing the lean philosophy and further shortening lead times, 2G plans to boost existing capacities by a further approximately 10% and thereby tap additional earnings potential. For this reason, the Management Board has specified the net sales forecast for the current year in a range of EUR 210 million to 230 million (previously EUR 200 million to 230 million).

Digitalization - live start of the intelligent service assistance "I.R.I.S."
2G successfully commissioned its I.R.I.S. ("Intelligent Report Information System") software platform, which was developed in 2018. Up to 400 million plant and sensor values per week are now intelligently evaluated in real time and interlinked in order to draw logical conclusions about CHP systems' current and future behavior. Such information can then be utilized in the service department to identify possible faults, initiate appropriate countermeasures and thereby prevent unplanned downtimes. As a consequence, fault messages are to be predicted before they occur (so-called "predictive maintenance"). The resultant efficiency gains create real added value for customers. In addition to better planning for service and the resultant savings, 2G also hopes to gain knowledge about further development opportunities in the CHP system area.

2G company portrait
2G Energy AG is an internationally leading full-service provider of combined heat and power systems (CHP) with electric output between 20 kW and 2,000 kW, which are deployed for the decentralized generation and supply of electricity and heating. 2G is consistently expanding its technology leadership through continuous research and development work, both in gas engine technology for natural gas, biogas and synthetic gas applications (e.g. hydrogen), as well as in specific software development. In particular, this product range, which is based on thousands of systems realized, significantly differentiates 2G from its competitors.

2G benefits from global long-term trends that make efficient and effective energy solutions ever more important. These include rising energy demand accompanied at the same time by the need to conserve natural resources. Moreover, in the energy revolution's future electricity market design, the digitalization consistently implemented by 2G forms an indispensable system-relevant element in combination with solar, wind, biogas and Natural Gas producers, and creates a high barrier to market entry for competitors.

The cogeneration of mechanical energy and heating/cooling make CHP technology more efficient and more environmentally-compatible than conventional energy production methods. Compared with conventional electricity generation, CHP technology saves up to 40 percent of primary energy, and emits up to 60 percent less carbon dioxide and nitrogen oxide. 2G customers thereby benefit consistently from economically and ecologically highly beneficial innovations that rapidly pay for themselves and create extensive added values.

2G employs around 600 staff at its headquarters in Heek, Germany, in St. Augustine, USA, as well as at five other European locations. The company is active in a total of 49 countries and generated net sales of EUR 189.4 million in the 2017 financial year. 2G was founded in 1995 and has been listed on the stock market since 2007. The shares of 2G Energy (ISIN DE000A0HL8N9) are listed in the "Scale" segment of the Frankfurt Stock Exchange. The share capital amounts to EUR 4,430,000, and is divided into 4,430,000 shares. As of June 2018, company founders Christian Grotholt and Ludger Gausling held a 53.3% interest in the company, with the free float amounting to 46.7%.

2019 calendar dates
April 11      Preliminary results for the FY ending December 31, 2018, 2019 guidance
May 10      Publication of the consolidated financial statements for the FY ending December 31, 2018
May 13-14     Spring Conference, Frankfurt am Main
May 29           Q1 key figures and business trends
June 25           Ordinary AGM, Ahaus
September 26   Consolidated financial statements as of June 30, 2019
November 25     Q3 key figures and business trends
November 25-26      German Equity Capital Forum 2019, Frankfurt am Main

IR contact
2G Energy AG
Benzstrasse 3, 48619 Heek
Telephone: +49 (0) 2568 93 47-2795
Fax: +49 (0) 2568 93 47-15
Email: ir@2-g.de
Internet: www.2-g.de